For many successful business owners, there is a basic life cycle that may generally describe the path and stages they have gone through with their businesses: start-up, development and establishment, and maturity. Specifically within the maturity phase, this often marks a time when the mentality for business owners begins to shift to questions around the future of their company. Of course, tackling thoughts as to what happens next and preparing to exit a business may often be extremely emotional and challenging for many owners, especially given the vast array of factors to consider in business succession and planning in this regard.
One of the main overarching questions many business owners struggle with is whether to transition their business to a family member or whether to sell it to a third party. Some individuals may have an idea as to their intentions for the future of the business, and it is often common among owners to have a natural desire and hope to pass on the business to successive generations and keep it in the family.
When it comes to the transition of assets and wealth as a whole, there is a general lack of preparedness among Canadians, and this is something that carries through to business owners as well. While a shortage of plans is likely to have certain negative consequences for all types of wealth transfer, it may have even greater implications for business owners from personal, family, wealth, tax, retirement and estate perspectives, given the different stakes and complexities associated with business situations. As such, it is vitally important to recognize not only the value of proper business succession planning in general, but also how crucial it is to take the right steps ahead of and during decision making in order to implement appropriate methods and effective approaches.
Your business started with a purpose. Murray Wealth Management is committed to helping guide you through the complex decisions of a thriving business, and manage your wealth in a way that reflects your unique values.
